Kazakhstan’s National Bank Raises Key Interest Rate to Combat Inflation

The National Bank of Kazakhstan has raised its key interest rate to 16.5 percent to combat rising inflation, which accelerated to 9.4 percent in February. The revised inflation forecasts indicate expected rates of 10-12 percent in 2025, with potential reduction to 5.5-7.5 percent by 2027 due to restrictive policies and tax reforms.

The National Bank of Kazakhstan has recently elevated its key interest rate to 16.5 percent. This decision, announced by the Monetary Policy Committee, establishes a corridor of +/- 1 percentage point for the base rate. The adjustment comes in response to an assessment of inflation risks and analysis of current data and forecasts.

The National Bank of Kazakhstan’s recent decision to raise the interest rate reflects a proactive approach to combat soaring inflation rates. By implementing restrictive monetary policies, the Bank aims to address inflationary pressures and stabilize prices, projecting a gradual decrease in inflation in the coming years.

Original Source: en.trend.az